Currency in Circulation Plus Bank Reserves

question 325

Multiple Choice

Currency in circulation plus bank reserves:

• A)forms the monetary base.
• B)is equal to M1 plus M2.
• C)equals the required reserves for a bank.
• D)equals the excess reserves for a bank.

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Definitions:

Half-Life

The time required for a quantity to reduce to half its initial value, often used in physics and chemistry to describe radioactive decay.

Radioactive Plutonium

A highly radioactive chemical element with the symbol Pu and atomic number 94, used as a fuel in nuclear reactors and in the production of nuclear weapons.

Capital Project

A long-term, capital-intensive investment project with a purpose to build upon, add to, or improve a capital asset.

Expansion

The growth of a business or its operations into new markets, territories, or product lines.